Kodak completes deal for its digital imaging patents

Eastman Kodak Co. said Friday it has completed the transaction for the sale and licensing of its digital imaging patents for net proceeds of $527 million.

The transaction, which achieves one of Kodak’s key restructuring objectives, continues its momentum toward emergence from bankruptcy midyear, the company said.

A portion of the $527 million was paid by 12 intellectual property licensees organized by Intellectual Ventures Management LLC and RPX Corp. Another portion was paid by Intellectual Ventures, which acquired a substantial majority of the digital imaging patent portfolio subject to these new licenses, as well as previously existing licenses, Kodak said.

Kodak originally had hoped to receive more than $2 billion for the patents.

The deal includes an agreement to settle current patent-related litigation between the participants. Kodak retains the rights to use the 1,100 digital imaging patents sold in the transaction.

“The licensing and sale of our digital imaging patents is another major milestone toward successful emergence,” said Chairman and CEO Antonio Perez in a statement. “We are on track to emerge as a profitable, sustainable company.”

The completion of the sale enables Kodak to repay a substantial amount of its initial debtor in possession loan, satisfies a key condition for its newly approved financing facility and positions its core Commercial Imaging business for future growth and success, the company said. Kodak maintains ownership of some 9,600 patents.